According to the latest data, the number of houses of multiple occupancy (HMO) in London fell last year by 13%. Across England, the total was down from 511,278 in 19/20 to 497,884 in 20/21. At Finefair Ltd, we know how lucrative good HMOs can be. However, they need the right management. We can help, and have a reputation as the most flexible lettings agent Redbridge can offer.

Why are HMOs in decline?

There is one big factor driving the change in attitudes towards HMOs. In 2018 the UK Government had a rule change. It made it a legal requirement to get a licence for all HMO properties with five or more occupants not from the same household. Before then, landlords would only need to get a licence for homes that met those conditions but with three or more storeys.

In order to get a licence for a HMO, bedrooms had to meet minimal space requirements. Plus each bedroom could also only sleep a specific number of people over the age of 10. The Government was aiming to improve the quality of these properties for the wellbeing of tenants. In the process they wanted to crack down on overcrowded, poor quality housing.

So, the rule change made it more difficult and costly for HMO owners. As a result, some have simply chosen to sell their assets.

Falling numbers in London

As we said above, the total number of HMOs in London has fallen by 13% in the last year. The biggest declines were in Ealing (minus 59%), Lambeth (minus 58%), and Redbridge (minus 50%). In total 11 boroughs saw their HMO numbers fall in 20/21.

Are there still opportunities for HMOs?

The decline in numbers may make you think that people are abandoning HMO assets altogether. However, that is not the case. There is still high demand for these properties among tenants, especially with the high rental rates in London. Landlords need to step in to provide them. They just need to be aware of the new licence costs and requirements.

According to some experts there has actually been an increase in refurbishment transactions. What this means is more landlords are looking to get assets they can improve and turn into licensed HMOs. This will increase the quality of the properties and benefit the tenants in the long run.

Speak to a top lettings agent in Redbridge

Finefair Ltd has a lot of experience with HMOs. In fact, we manage a number of them for our clients. What we do here is ensure properties that need a licence have one and comply with the Government’s requirements. This ensures everything is legal and that there is no risk of penalties.

So, if you want to work with a reliable team known as the most dynamic lettings agent Redbridge can offer, speak to us. We can look at your HMOs and any other rental assets. Plus, we can guarantee rent and more.